Employers Unsure What to Do Following Health Care Reform

December 28, 2009 (PLANSPONSOR.com) - According to new research from MetLife, 83% of employers report paying close attention to health care legislation developments.

However, many of today’s employers (41%) aren’t sure what they will do regarding medical benefits should legislation pass, a press release said. Thirty percent of those that do offer medical coverage expect their health benefits to remain unchanged, while 39% of those employers who do not currently offer medical coverage are not anticipating offering that benefit.

Three-quarters of employers strongly agree that employees consider health insurance a critical component of a compensation package. Virtually all (96%) also say promoting a culture of health and wellness for employees is important.

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While 36% of employers are unsure about what they will do regarding non-medical benefits like life insurance, disability income protection, and dental benefits, should legislation pass, 44% of those that offer these benefits anticipate that they will make no changes to them. Only 5% of employers who offer these benefits say they would consider reducing them.

As for where they obtain information about health care reform legislation, 56% of employers cite traditional media outlets (TV, radio, newspapers and magazines) as preferred sources. However, more than half (57%) of larger employers (500 or more employees) are also turning to their benefits brokers or consultants for information, more so than to business media (42%), general audience media (37%), or industry publications (32%).

Consumer Thoughts on Health Care Reform

According to new research from MetLife, 75% of individuals report paying close attention to health care legislation developments. Among generations, 83% of Baby Boomers and 74% of Generation Y individuals say they are closely following reform developments, compared to 63% of Generation X.

More than eight-in-ten (85%) individuals said they get their information on legislation developments through traditional media outlets (TV, radio, newspapers and magazines).

A MetLife press release said its survey found levels of satisfaction with current medical benefits impact Americans’ attitudes toward health care reform. More than six-in-ten (62%) Americans without any medical insurance feel that health care reform will be "good for America," contrasted with 42% of those with medical insurance (see IMHO: Health “Care”). Nearly two-thirds (65%) of Generation Y individuals believe that health care reform will impact them favorably, but only 44% are satisfied with their current medical insurance. On the other hand, while only 34% of Boomers believe that health care reform will have a positive impact on them personally, 63% say they are satisfied with their current medical coverage.

The survey indicates attitudes toward health care reform also correspond to health status. According to the press release, 65% of individuals surveyed who assess their health as fair or poor say that health care reform will have a positive impact on them and their families, contrasted to 28% of those who say their health is very good or excellent.

The MetLife Study of Employer/Consumer Attitudes on Health Care Reform surveyed 501 benefits decision-makers at companies with ten or more employees, representing a mix of industries and geographic regions, and 701 consumers between the ages of 21 and 65 between November 2 and November 22, 2009.

PBGC to Take on PTC Alliance Corp. Pension Plan

December 28, 2009 (PLANSPONSOR.com) - The Pension Benefit Guaranty Corporation (PBGC) is moving to assume responsibility for the underfunded pension plan covering about 750 employees and retirees of PTC Alliance Corp.

The Wexford, Pennsylvania, maker of specialty steel tubing and has been in chapter 11 bankruptcy since October 1, 2009, and is preparing to sell substantially all of its assets at a hearing tentatively set for January 4, 2010. The PBGC said if it delayed action until after the sale, the plan would face abandonment and there would be no assets to pay the agency’s claims for unfunded pension liabilities. 

By taking this action prior to the sale, the PBGC matures a claim for the entire pension shortfall against domestic and foreign assets of PTC Alliance, according to a press release. Any purchaser of PTC Alliance assets will have to make provision for the pension plan before it can take clear title to these assets.

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The PTC Alliance Corp. Pension Plan is 51% funded, with $39.7 million in assets to cover $77.1 million in benefit liabilities, according to PBGC estimates. The agency expects to be liable for $37 million of the $37.4 million shortfall.

The PBGC will take over the assets and use insurance funds to pay guaranteed benefits earned under the plan, which ends on December 28, 2009.

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